Pediatrix Medical Group, Inc.

Hello and thank you for standing by. At this time, I would like to welcome everyone to the Q4 2025 Pediatrics Medical Group, Inc. Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, again press the star 1. I would now like to turn the conference over to Marianne Moore, Chief Administrative Officer and General Counsel. You may begin.

Thank you, Operator, and good morning. Certain statements and information during this call may be deemed to be forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions and assessments made by pediatrics management in light of their experience and assessment of historical trends current conditions, expected future developments, and other factors they believe to be appropriate. Any forward-looking statements made during this call are made as of today, and pediatrics undertakes no duty to update or revise any such statements, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments, and business decisions to differ materially from forward-looking statements are described in the company's filings with the SEC including the sections entitled risk factors. In today's remarks by management, we will be discussing non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in this morning's earnings press release, our quarterly and annual reports, and on our website at www.pediatrics.com. With that, I will turn the call over to Mark Ordan, our Chief Executive Officer.

Thanks, Marianne, and good morning, everyone. Also with me today is Cassandra Rossi, our Chief Financial Officer. Our fourth quarter results were quite strong and capped an equally strong 2025. Our adjusted EBITDA of $66 million was in line with our upwardly adjusted guidance. Throughout 2025, including the fourth quarter, strong volume, acuity, and payer mix, combined with strong financial control, gave rise to these results. During this time, we welcome new leaders in key areas of the company, all of whom are dedicated in some way to focusing on care quality, which of course is the very essence of pediatrics. With these investments and record practice bonuses, our full year adjusted EBITDA was a very strong $276 million. We expect our results in 2026 to be in the range of $280 to $300 million, which at its midpoint, of course, is 5% above 2025. This projection assumes steady metrics, including volume, acuity, and payer mix, and recent, though early, results support this outlook. Despite these steady metrics on our top line, we have several operational initiatives which we believe will flow favorably to our adjusted EBITDA. We have said that we assumed that there was some pay or mixed benefit in 2025 from ACA subsidies. If those continue to lapse with no effective remedy, we would expect some effect. And as we have said before, this is very difficult to quantify such an effect because there are many possible outcomes. Cassandra will now provide some additional details on the quarter and preliminary outlook for 2026.